India In Contact With US Over Trade Deal Talks, Says Commerce Secretary

India and the United States continue to hold regular discussions on the proposed bilateral trade agreement (BTA), Commerce Secretary Rajesh Agarwal said on Thursday.

He reiterated that both countries remain committed to the framework for the first phase of the agreement, which was finalised in February.

However, changes in the US tariff regime have led to additional negotiations and complicated the timeline for concluding the pact.

The US Supreme Court’s decision to strike down an earlier reciprocal tariff structure introduced by President Donald Trump has added another layer of uncertainty.

India is currently facing an additional 10% duty on certain goods under a Section 301 investigation concerning allegations related to forced labour.

Agarwal declined to comment on a US Senate bill concerning tariffs on imports from countries buying Russian oil, describing it as an internal legislative matter. The legislation, which received strong Senate support earlier this month, could allow the US president to impose tariffs of up to 100% on goods from major buyers of Russian oil and gas, including India and China.

India seeks competitive tariff advantage

As per government officials, the proposed US legislation was a concern but stressed that New Delhi is closely monitoring developments and maintaining communication with Washington at multiple levels.

According to Agarwal, a completed trade agreement would provide greater stability and predictability to businesses in both countries, allowing companies to make investment and trade decisions with greater confidence.

Commerce and Industry Minister Piyush Goyal has previously said India would implement the first phase only after securing a favourable tariff position compared with competing exporters such as Bangladesh, Vietnam, Thailand, Sri Lanka, Cambodia, Indonesia and Malaysia.

The Commerce Ministry said India remains actively engaged with US authorities and is working towards an early conclusion of the BTA.